GBP Trading Outlook (04-01-2013)

The Sterling (GBP) was weaker than the Euro and fell the most in 1 trading day since 2011. The main catalyst was the USD strength post FOMC minutes but also a growing feeling in the market that a short term top is in place for the EUR/USD and GBP/USD. Looking ahead, EU PMI Services forecast at 47.8 vs. 47.8 previously. Also December Inflation Flash forecast at 2.1% vs. 2.2% previously

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